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What about this Dell Phone?

Dell, after a lot of denials, finally confirmed release of its first smartphone, the Dell Mini 3. The device will run on Android (as well as on China Mobile’s specific Android flavour, called OPhone) and features a 3.5” touchscreen. Otherwise? Erm, not much known. No WiFi for China to be sure, at least not at the start.

In a move that was ridiculed by some, Dell chose China Mobile and Claro Brasil as its first partners to distribute it. Some sources suggested this may be “crazy” but I am wondering why that is so? Because it’s not – no offence – Idaho? China Mobile has 508m subscribers, that is 200m more than the population of the US. Claro has 28m subscribers in Brazil, its holding company America Movil has 194.3m subscribers. That’s not shabby! And there is larger growth potential in these markets, too. The raised eyebrows may simply come from the fact that this is (or at least appears to be) the first time that a US vendor chose emerging markets as its launch territories. I would suggest that this is only the beginning: it is these markets where the large majority of user growth resides. Good move that.

Now to the more critical points, and a small one at first: They could have done better on the marketing. Apple shows everyone how it’s done: come out with a bang and woe them. I do not think there is a need to outperform competitors on the technical side but a strong launch allows you to tell your story rather than leave it to a plethora of commentators to pave the way.

The larger question will be if and what the Dell smartphones offer that others don’t. Will a Dell phone connect more seamlessly with a Dell computer (or any computer for that matter?). Will it have some nifty little features that have the power to make a difference? Never mind that Michael Dell may not have the coolness factor of Steve Jobs; that’s fine. But will the devices be good? Dell has shown it can do it (with its PDA Axim that of course died together with the rest of the market). The smartphone market is only starting to evolve, so the timing might be better this time. Let’s see…

EA & Playfish: Gaming Being Re-Defined

In my last post, I hinted that the Google/AdMob deal might just not be the #1 deal of the week and, whilst one can of course dispute this, here’s why:

On the same day Google’s AdMob acquisition was announced, there were more guys walking to the bank, namely the good folks from Facebook games kings Playfish (well, joint kings with Zynga) who have been acquired by Electronic Arts for a cool $400m (incl. earn-outs).

Why is this more significant? Because it is (like Google/AdMob) a cross-platform play that (unlike Google/AdMob) also expands the basis of business models deployed. Playfish derives the majority of its revenues from so-called virtual currencies, and in particular also from lead-generation deals (which recently have become “a little bit” under fire for queries of their ethics). But ethics or not (and Playfish seems to have been fairly clean in this respect), the main point is that there has been a business model that is new, well -ish: it is not reliant on display ads nor paid subscriptions or download fees, etc. It is a new form of engagement there, crude in its beginnings but new no less: users are encouraged to interact with brands in exchange for personal details. Now, if done – as often – crudely, this has a bad feel.

But brands might also want to grab this with both hands because it offers unprecedented opportunities to truly enagage their users: interact with them and they will be more forthcoming. Behave and their sentiment will be positive. Be sincere and they will recommend your brand to their peers (which accounts for 74% of purchases online!). Check my recent keynote on this topic…

EA had changed the mobile gaming world when it acquired Jamdat by using a significant distribution footprint and leverage it with its own brands and the financial muscle only someone with its revenue HQ outside mobile could at the time. The acquisition of Playfish provides a similar footprint in the online world (do not forget that Facebook is “only” the largest bridgehead of online games).

As with Jamdat, EA is expanding the options of available business models and this is to be commended!

Google & AdMob: Is that It?

It was an eventful week but I shall pick Google’s acquisition of AdMob as my top (well, maybe only #2) item. A game changer, the final acknowledgement of the power of mobile, there is a lot one can find to describe the deal and for all the right reasons:

The acquisition of Admob by Google shows Google’s commitment to “mobile, mobile, mobile”, which in itself is encouraging for the sector that is – despite a number of larger players evolving and despite the still relatively recent paradigm shift initiated by the iPhone – still fledgling. That in isolation makes it great news for the mobile sector!

From Google’s and Admob’s respective business perspectives, it appears to make eminent sense, too (and I am not privy to their numbers): Admob will be able to bulk up and cement its leadership position in the segment. Its inventory and back-end ad management will be able to dip into Google’s vast resources, which is great for them. Google probably realized that Admob’s strength meant that they would be difficult to beat. And who you can’t beat, you shall join (or, in Google’s case, buy) them. For Google, it is a smart move as it gives them critical mass in an ad format where they have not nearly been as dominant as for other formats and gives them access to a lot of eyeballs.

The eyeballs bit is, however, maybe the concerning piece of this: Google makes 97% of its revenues from its legacy business using AdSense, AdWords, etc. Nothing much has changed for a couple of years and it has miserably failed with a couple of acquisitions (anyone remembering “the 2 kings have gotten together” [1:00]?), YouTube is a great site but did Google maximize it (yet)? Probably not. Jaiku was more than just a worthy competitor to Twitter; they were history the moment Google bought them (well, it was eventually moved to Google’s App Engine but no one seems to have made much use of it).

As much as I admire Google, the company (where – get this -, when in new product development, you are allegedly judged by the number of failures you managed to produce! Very, very good and gutsy thinking!), it has to get its head around more “modern” approaches to marketing and engagement. Text and display ads alone won’t cut it in the long run… But, in any event, the combination with AdMob will give Google a little bit more of a runway to get this right and – smart companies both of them are – I am sure there is more than enough brain cells to get it right. All good!

Licensing & Open Source / Presentation

Here’s the presentation I gave at Droidcon in Berlin. It is also available here on Slideshare.

Unfortunately, Slideshare omitted the beautiful font I used (Chalkduster). Sorry… 😉

Update: a version with the original font is now available here (I finally figured out that it would preserve it when saved as a PDF. Doh!)

Conference: Droidcon, Berlin

Droidcon is the first conference around the business and development environment for Android. The full programme is available here. It’s rolling right now in Berlin-Dahlem (Dahlem Cube). It will be followed by one of Mobile Zeitgeist‘s MZ Mixers, which kicks of tonight at 6pm (local) in the CSA Bar in central Berlin. Come around if you’re in the area. Should be cool!

Carnival of the Mobilists # 198

This week’s Carnival of the Mobilists is being hosted by new “Keeper of the Tents” and leading sector analyst Peggy Anne Salz over at MSearchGroove. Peggy kindly included my post on empowering media. But there are lots of goodies besides this, too: read the latest on mobile advertising, mobile as an educational tool, user experiences in the non-smartphone world, etc, etc.

Head over there now and read it here.

Finally, a special thank you goes out to Keeper of the Tents Emeritus, Judy Breck, who has been handing the baton over to Peggy. Thanks, Judy, for all your good work, effort and – most importantly – inspiration!

N-Gage dies (again)

Nokia’s N-Gage game service has just been declared dead, well dying anyway. always been a concept that has under-delivered painfully. In its first iteration, the device, it was a gutsy but maybe not entirely thought-through attempt to combine phone and dedicated handheld gaming device (it was always going to lose as one simply looked outright silly even when putting the thing towards ones ear to make a call – even when stood at a Star Trek convention, and that is telling). The “new” iteration, the software platform, struggled to take off. Nokia tried mightily to produce showcases demonstrating the superior gaming abilities of the platform compared to “regular” feature and smart phones but the efforts were thwarted from a number of angles:

Too expensive

It was a costly affair to deliver a game optimized for the N-Gage platform. When there is no proven distribution model that can guarantee decent returns, there would always be limited uptake from developers and publishers.

Too small a niche

N-Gage was always geared towards dedicated gamers. All marketing was directed this way, the positioning was distinctly high-end, no non-game applications were shown (or even contemplated, I guess). The power of the platform thus was funneled into a niche of a niche, i.e. high-end gaming. I would suggest that one could as easily have positioned it as a powerful media platform full stop. One that allows for beautiful execution of any number of simple or complex apps (and a game is basically “only” one app category).

There’s an app for that

The iPhone then was arguably the final punch. In spite of developer frustrations growing over discoverability within this pile of 100,000+ apps, the platform has spurned exceptional games galore, and not only casual ones either. Real Racing is as punchy a racing title as one will ever get one on a handheld. And with people flogging to the app store in drones (rather than visiting it once to rarely if ever return), it appeared a less risky (and certainly more fashionable) move to leave it at that. Notably, Apple got the positioning piece (see above) right: even though it is a powerful gaming platform in its own right (anecdotally, the good folks at Firemint managed to string Real Racing to up to an impressive 82 fps), it never looked at this as a sole or even the main focus of the platform. There is a good reason why their already famous moniker says

there’s an app for that

rather than

there is a full 3D, 60+ fps, multi-player, high-end, Bluetooth and WiFi-enabled fighting game with dedicated combo mode for that.

And Mark Ollila, Nokia’s Director of X-Media Solutions and a games and general industry veteran, nails all of this down when he says that

One lesson is the complexities of offering rich games content on a global scale. […] How do you handle the billing, the local marketing intricacies and the type of gaming experiences that work in different markets? And what do consumers actually want – is it the high-end games with connected features that N-Gage was delivering, or a much broader catalogue?

At the heart of it is the conceptually different approach of monolithic, super-rich and highly integrated platform versus a more modular approach: in Apple’s app store ecosystem (or in Android’s for that matter), you can integrate most if not all of N-Gage’s features, too: multi-player gaming, communities, trial versions, etc. But you don’t have to. The former lacked flexibility, which made it susceptible to the nimbler, faster moves of a modular system.

Well then. It at least gives Nokia the opportunity to focus solely on building out the Ovi platform and fix the bugs it has been plagued with at the start. Nokia clearly feels the pains of the rapidly changing market place and it struggles to adapt swiftly (which is – and one should appreciate this – much harder when you are running a product portfolio that has a market share of well double your nearest competitor and stretches all the way from the most basic feature phones to the most advanced smart phones) but it has people that should be capable to turn it around. Not easy, mind you but they’re a mighty player that has shown its ability to innovate numerous times, never forget that.

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